NewsCovering Colorado


State proposes new overtime rules for workers

raise on minimum salary exemption included
Posted at 5:16 PM, Nov 19, 2019
and last updated 2019-11-20 08:48:08-05

COLORADO — More workers could be seeing overtime pay in 2020 if the state adopts new rules proposed this month by the Department of Labor and Employment.

With a rising cost of living, and concern over wages not staying on track, some see it as a need for Coloradans to live and work comfortably.

The new rules would increase the minimum salary for employers to not pay overtime. The minimum would be $42,500 in 2021 and would raise $3,000 a year until 2026 when it would cap at $57,500. Anyone making less than those amounts will be entitled to overtime pay of more than 40 hours a week or 12 hours a day.

"This is a system that has to be updated periodically," said Rachel Beck the Vice President of Government Affairs for the Colorado Springs Chamber and Economic Development Center , "it makes sense to adjust those levels."

In the past, workers in retail, food and beverage, commercial support service, and medical industries were required to offer overtime. The new rules would expand it to all overtime.

For construction workers, it will impact some rules currently in place. Right now commercial construction workers are entitled to overtime pay, but those working on residential projects are not.

For Nunn Construction in Colorado Springs, they say it won't impact them as they already pay workers a few dollars above the minimum wage and offer overtime to its workers.

"I can definitely see a lot of companies getting hit by it and having extra costs because of it," said Philip Lasarre, Vice President of Nunn Construction, who says they offer a higher wage due to a shortage of construction workers.

There are other concerns for business owners, with minimum wage increasing each year and discussions of paid family leave- Colorado Springs Chamber says they believe employers are seeing increasing challenges.

"There is starting to be a cumulative effect, and you know, businesses want to be doing what they do best whether that's making a product, delivering a service and the more administrative burdens and costs we put on them the more difficult it is to do business the more difficult it is to grow business," said Beck.

The rules were introduced this month, and if adopted, it would go into effect in March of 2020, except for the new exempt salaries which would begin on July 1st.

If you'd like to see a break down of the proposed changes click here:Summary of Proposed Overtime and Minimum Pay.